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Empirical analysis of national culture and performance-related pay in multinational and local companies in Thailand

The purpose of this study was to investigate PRP practices in Thailand where is a collectivist society whereas PRP schemes are initiated from the Western management based on individualism. The research focused on the differences between two groups of employees working under PRP plans. Also the study examined the elements of PRP and work-related aspects (teamwork, career advancement and organisational commitment) by examining whether or not the nationality of an owner was related to such variables. The study relied upon survey data collected from 6 companies representing the manufacturing sector in Thailand. Using descriptive and inferential statistics: Mann- Whitney U test, Kruskal-Wallis test and partial correlation, the study has found that PRP practices are typically deployed in a specific cultural context, that HRM aspects fit, regarding culture, leads to improve PRP perceptions. Moreover, female, lowly-educated workers, those with children and non-union employees exhibited greater perceptions of PRP, unexpectedly. There were no significant differences found among employees in the three groups in terms of setting objectives, system design and pay-performance links. However, the differences of performance appraisal, fairness and communication were addressed. Surprisingly, there were no significant differences among employees working within Thai, Japanese and American companies with respect to teamwork and career advancement. Regarding organisation commitment, statistically significant differences were found according to affective and continuance commitment. The implications, suggestions and limitations for further studies of PRP plans are presented. This research serves to consolidate the HRM's learning and direct for future work such that it may continue growing and contributing to HRM knowledge.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:585163
Date January 2011
CreatorsThapatiwong, Archabaramee
PublisherCardiff University
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation
Sourcehttp://orca.cf.ac.uk/54449/

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